If you are about to buy a car with the new 10-plate registration you have a window of just a few weeks to avoid paying hundreds of pounds in additional tax.
From April 1 the government will introduce a one-off “showroom tax” that takes the form of an increase in the rate of Vehicle Excise Duty (VED) for the first year of ownership.
The amount of extra VED varies and depends on the new car’s emissions. For higher– polluting vehicles the increase could run into hundreds of pounds. For example, a new Range Rover registered after April 1 will be hit with VED totaling £950, compared with the current level of £405.
Car dealers are urging potential buyers to take advantage of the short time window in which they can avoid the new tax, assuming they are planning to buy a higher CO2-emitting car. The new 10 number plates become available from March 1 so buyers have a month to register a car before the April 1 deadline.
The changes were announced in Alistair Darling’s 2008 budget but the time lag has meant many car buyers are unaware that they are about to come into force. Jo Eveleigh, of Dealdrivers.co.uk, an online car dealership, said: "We have had these tax changes flagged on our website alongside each model yet fewer than 20% of site visitors have clicked the link in the last three months despite the fact it could really affect the price they end up paying. People ordering cars now for delivery beyond March 31 may get a nasty shock."
The VED bands attracted criticism at the time. Although aimed at discouraging gas guzzlers such as big off-roaders, the penalty also applies to conventional cars. Many family MPVs fall into the new top band of VED for cars that emit more than 255g/km of CO2.
Government announced recently it is to introduce a quota system to motor manufacturers for the remainder of the car scrappage scheme fund.
The Scrappage Incentive Scheme, launched in May 2009 allowed for up to 400,000 motorists to claim £2,000 off the cost of a new car or van when scrapping a vehicle over 10 years old and was extended in September. With the scheme due to close at the end of February 2010, the Department for Business, Innovation and Skills has announced that it will allocate order quotas to manufacturers, based on brand popularity, to help ensure a managed exit from the scheme.
In the announcement, business secretary Lord Mandelson said, "I'm pleased to see that the scheme has been taken up by so many people, supporting our automotive manufacturers through a very difficult time. With limited orders as we near the close of scrappage there is a risk of disappointment for car buyers. I would urge people who are still keen on taking part to put their orders in as soon as possible as time is running out."
SMMT welcomed the quota system. Chief executive Paul Everitt said, "The scrappage incentive scheme has proved hugely successful and the positive impact it has had on the new car market is clear.? The quota system will ensure an orderly end to the scheme with buyers and manufacturers both having a clear understanding of available funding. With more than 80,000 vehicles still available, we urge those thinking of taking advantage of the scheme to place their order sooner rather than later."
The latest scrappage registration figures released this week by SMMT show that over 20% of registrations in the last six months of 2009 are attributed to scrappage. In addition to positively impacting the UK economy, the scrappage scheme has put cleaner, safer and more fuel-efficient vehicles on the road. New cars registered through the scheme had an average CO2 value of 133.3g/km. This was 9.8% below the 147.8g/km average of all new cars registered between May and December, and 26.9% below the average CO2 of the scrapped car.
Make sure you’re aware of the driving laws of the country you are in such as speed limits, which are often different to those in the UK. Drink driving laws also vary and can be lower than in this country. Take out some form of breakdown cover before you set off. If you’re unfortunate enough to break down, you could find bringing the car back to the UK an expensive business if you don’t have the cover you need. Remember to carry your insurance certificate, vehicle registration document and a current tax disc - and don’t forget to tell your insurance company the dates of your trip. Pack as lightly as possible to lessen the load on your car and to help save on fuel and make sure all items are secure so they don’t shift when you are on the move. Most importantly, make sure the drivers vision is not obstructed. Check your tyre pressures match the load of the car.
Service your car properly, topping up all fluids such as engine oil, water, brake fluid and engine coolant. Check that all lights and wipers are working and that tyres are in good condition and at proper air pressure – including the spare.
Fill up with fuel before you set off but don’t fill the fuel tank to the brim. In hot temperatures, the fuel will expand and if the tank is too full, it will overflow.
Store an emergency kit in the boot including a flash light, jump leads and a reflective triangle, in case you do have to deal with a breakdown.
Before you leave, try to plan your route and allow for regular breaks along the way.
Take some games for the kids – if they are kept busy it does reduce the number of times that you hear ‘Are we there yet?’! Try spotting and counting different trucks on the motorway – we got to 72 Eddie Stobart’s trucks between Edinburgh and Bristol before the kids got bored of that one!!
